The WP Minute $12 Billion for Mailchimp is bananas
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I’ve invited Lesley Sim, co-founder of Newsletter Glue (hey! they power this newsletter!) to share her opinion on the recent Mailchimp acquisition by Inuit for $12 Billion dollars.
Mailchimp is almost as synonymous with WordPress as Yoast is, so I’m sure many of you have some mixed feelings about this.
I was delighted to hear her opinions on the software, community feedback, and what comes next for a product like NG which integrates so closely with large platforms like Mailchimp.
Click the podcast player to hear the episode and don’t forget to share this with others!
Mailchimp alternatives mentioned (but also, don’t drop Mailchimp):
Transcript
[00:00:00] Matt: It’s the WP minute today’s special episode is brought to you by easy support videos, support your WordPress users, right inside your WordPress admin. Using embeddable videos to show them what to do. Check out easy support videos.com today’s special episode. Is hosted by Leslie SIM. One of the co-founders of newsletter glue, a fantastic email newsletter plugin that integrates with WordPress. It delivers this.
[00:00:27] Email that goes out for the WP minute today’s episode. She breaks down her take on the MailChimp acquisition.
[00:00:34] I invited Leslie to share her opinion on the acquisition since she works so closely. Well, not only with MailChimp, but with email, with newsletters, with customers. Leveraging these platforms. Okay. Let’s dive into Leslie’s episode about the MailChimp acquisition for nearly half the total value of the world’s banana industry.
[00:00:59] Lesley: I’m super happy for the team. I believe they’ve worked on MailChimp for over 20 years and that’s a long, long, long time to be working on anything. And if they want to move on, then that’s great. It’s a very large amount of money, so I’m glad that they were able to have such a great name.
[00:01:19] Not all companies, are able to have amazing exits, not all companies want to exit. But I can see, or I can imagine if, the founding team gets tired of stuff like their options are we sell the company or we transition out and hire a CEO CEO to work on top.
[00:01:39] For, we know we, they considered that and chose to exit and, they could liquidate some of their ownership and that’s great.
[00:01:46] Sometimes, with acquisitions of this size there it’s, it can be kind of polarizing. So I saw a tweet this morning from Ruben Gomez and yeah. Funny, I’ve seen completely opposite takes on MailChimp acquisition plus bootstrapping.
[00:02:03] The first being this proofs, bootstrapping is dead good riddance. And the second, this proofs bootstrapping works for building very big companies. So I’m on team. This proofs boot shopping works for very big companies. Yeah, they were bootstrapped. They got a gigantic exit. So that’s great.
[00:02:23] The other kind of polarizing take that I saw online for this was the founders got all the money because the employees didn’t have equity because this was a privately held company that the employees kind of, didn’t get a big win as well.
[00:02:37] And I kind of have some opinions on this. It said in the press release that I think the, the employees got like a 300 million RSU restricted stock options
[00:02:47] so it’s not like the, the employees came away with nothing, but also having said that, if you’re joining Coca-Cola or. Pepsi or PNG, you don’t join with the intention of getting equity from the company. I feel like that’s kind of a quirk of the tech startup wall and it’s not really something to be expected.
[00:03:10] Also let’s not forget the reason why a lot of these startups give equity in the first place. The reason being. At the beginning, this, these companies can’t afford to pay their employees a four week. And so the supplement, a smaller wage with stock options on the promise slash bet that the company grows big.
[00:03:33] So, so people forget that as well. They forget that so many of these startup, no matter what they promise, they end up going bust and, It’s where it doesn’t matter, like, that you had all those stock options, like you’re now out of a job. Right. And you stock means nothing.
[00:03:49] So I feel like some of that conversation is kind of that conversation and that unpleasantness is, kind of misplaced.
[00:03:57] Matt: Does the MailChimp acquisition. Have any effect on newsletter glue
[00:04:02] Lesley: MailChimp has some of the best public APS on the market and excellent, excellent documentation as well. I don’t think that it will get worse even if they don’t maintain it properly or whatever. It’s still, already industry-leading. And I mentioned the EPA is because that’s how we knew that the glue connects MailChimp to WordPress. No impact on us there.
[00:04:25] Matt: I’ve seen this reoccurring trend throughout the years of evaluating and using software where a great piece of software serves a very strong utility in the early days. And everyone loves it. Because it’s doing exactly what they need. And as that company grows. The software starts to scale into something of a larger platform. MailChimp is a perfect example of this. It used to send just newsletters and then it became an automation tool, an e-commerce tool.
[00:04:56] A landing page tool, and so many other things, probably under the hood. Do you have any words of wisdom for scaling a piece of software? For those of us who are out there? Uh building our own software tools
[00:05:08] Lesley: I don’t have any legitimate words of wisdom seeing as how I’ve never scaled any software from utility to a larger platform plea newsletter guru is still very much in the utility space.
[00:05:21] I do kind of see why software or why a company would do this.
[00:05:26] At some point you kind of, reach a market situation. Most people know about you. You’ve mostly put insight your possible users in a market have already used you. And there’s only so much more growth. You can act out.
[00:05:39] A specific feature. And so people start moving breadth ways rather than depth. So rather than building like deeper and deeper for a customer set, they start moving breadth ways to get new customers. And I guess like the ultimate breadth plea is to become a platform. MailChimp was trying to move into e-commerce for, I think the past two or three years, they moved into landing pages as well. And a lot of that didn’t really get much traction maybe because of their name, they have mail baked into their name. And so, it’s hard to become a e-commerce landing page bu...